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Over the past year, one of our core themes has been to expect market volatility due to the election.  The unexpected victory from Republican nominee Donald Trump may lead to increased uncertainty ahead.  With Trump, we do not have any past political track record or voting history to analyze which makes many anxious.  We have seen many asset classes exhibit price swings in overnight action and this has continued today.   The good news is that US stocks are significantly higher than the lows seen overnight.

Regardless of the election outcome, it is most important to continue to follow the disciplined process that we have worked together to implement.  Successful principles including maintaining a diversified portfolio, understanding the risk in the portfolio and re-balancing as needed have worked over time.  There will be good markets and bad markets.  Do not let your emotions negatively impact your financial decisions.  While hard to stomach, market volatility often allows one to find opportunities due to overreaction and the madness of the crowds.  At this time, we are not making any significant changes.  However, should prices or developments warrant a move, we will respond accordingly.

Recall that our 4th quarter PSG market update discussed the current market and analyzed historical data on elections in detail.  It is available at  Bottom line, fundamentals matter over a full market cycle much more than who is in the White House.

Should you wish to discuss this in more detail, please contact us at 301-543-6000.